Federal Reserve Chair Powell Faces Criminal Investigation Amid Political Tensions

Former Federal Reserve Chair Jerome Powell faces a criminal investigation by the Department of Justice regarding his 2025 Senate testimony, amid allegations of political pressure over interest rates.

This rare probe highlights potential threats to Fed independence, impacting traditional markets as stocks slipped; no immediate effects on cryptocurrency markets identified.

DOJ Targets Powell Over $2.5 Billion Fed Renovations

The Department of Justice has initiated a criminal investigation involving Jerome Powell, focusing on his June 2025 Senate testimony about $2.5 billion Federal Reserve renovations. Powell characterizes this investigation as “unprecedented pressure” resulting from political disagreements over interest rate policy. He argues that the inquiry is not genuinely aimed at testimony discrepancies but rather at influencing Federal Reserve decisions to align with political preferences.

Market implications are evident with traditional financial markets displaying noticeable reactions. The Dow Jones declined 290 points, accompanied by reductions in the S&P 500 and Nasdaq indices. While there was no considerable movement in cryptocurrency markets, traditional financial sectors are showing signs of strain.

“This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings… The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President.” — Jerome H. Powell

Bitcoin Stable Amidst Powell Investigation Turmoil

Did you know? The criminal investigation into a sitting Federal Reserve Chair is unprecedented. This highlights the increasing political pressures on central banks in keeping economic policy independent, reflecting historical challenges during presidential administrations.

Bitcoin is currently priced at $91,421.28, with a market cap of approximately $1.83 trillion and a 24-hour trading volume reaching $35.06 billion, as reported by CoinMarketCap. Bitcoin’s price has shown a 0.59% increase in the last 24 hours but decreased by 18.50% over the past 90 days.

Insights from the Coincu research team suggest that ongoing political challenges faced by central banks could influence long-term economic policies and regulatory frameworks. This may potentially impact global markets if similar pressures continue to affect critical economic institutions.